Regulation .12 Financial Counseling.
Regulation .12 Financial Counseling.LinkCopy Citation
A.
Each borrower shall participate in a financial counseling program acceptable to the Department unless, in the written determination of the Program, a financial counseling program is not available for the borrower or the Program otherwise determines that financial counseling is not necessary.
B.
In order to be acceptable to the Department, a financial counseling program shall:
(1)
Require financial counseling before the loan is approved and after the loan closes, to the extent determined necessary by the Program;
(2)
Provide credit counseling, including counseling about budget planning;
(3)
Provide mortgage delinquency counseling, including a plan to address alternatives to a program loan such as:
(a)
A repayment plan with the mortgagee or mortgagees,
(b)
A forbearance agreement,
(c)
A refinancing of the existing mortgage debt,
(d)
Assistance from federal and private programs, and
(e)
Sale by the owner directly to a third party instead of foreclosure.